16 Feb 2015
Japan crawls out of the technical recession – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team reviews Japanese GDP release, noting that Japan posted a modest growth after facing two consecutive quarters of decline, signalling that the economy is resurfacing out of the technical recession.
Key Quotes
“Japan economy resurfaced after two consecutive quarters of decline with a modest expansion, however its growth rate was well below expectations.”
“Annualized GDP of 2.2% in Q4 was below 3.7% consensus, even as nominal (pre-inflation) growth was just below target at 1.1%."
"Exports bounced sharply by 2.7%, up from 1.5% in Q3, but consumption and private CapEx components weighed on recovery, rising just 0.3% (0.8%e) and 0.1% (1.0%e) respectively.”
“Picking through the overall soft data, govt officials continued to cheerlead selectively. Econ Min Amari focused on rebounding Deflator component as indication of favorable conditions toward beating deflation, adding real wages and consumer sentiment have turned higher in the last month of the quarter.”
“Cabinet Sec Suga noted prices are rising, but wages are not catching up.”
Key Quotes
“Japan economy resurfaced after two consecutive quarters of decline with a modest expansion, however its growth rate was well below expectations.”
“Annualized GDP of 2.2% in Q4 was below 3.7% consensus, even as nominal (pre-inflation) growth was just below target at 1.1%."
"Exports bounced sharply by 2.7%, up from 1.5% in Q3, but consumption and private CapEx components weighed on recovery, rising just 0.3% (0.8%e) and 0.1% (1.0%e) respectively.”
“Picking through the overall soft data, govt officials continued to cheerlead selectively. Econ Min Amari focused on rebounding Deflator component as indication of favorable conditions toward beating deflation, adding real wages and consumer sentiment have turned higher in the last month of the quarter.”
“Cabinet Sec Suga noted prices are rising, but wages are not catching up.”